Father’s Day 2016: Impact on US Retail - fbicgroup ·...

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DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.

• Spending for Father’s Day, which falls on June 19, is expected to reach a record high of $14.3 billion in 2016—the highest total since the National Retail Federation (NRF) began surveying consumers about the holiday 13 years ago, but lower than the Mother’s Day total of $21.4 billion.

• The NRF projects an average Father’s Day spend per person of $125.92 this year, up from $115.57 last year.

• Top gift choices for Father’s Day this year include experiences, clothing and gift cards.

• Two in five millennials are planning to give a gift of experience, a figure significantly higher than that of older generations.

• Department stores will see the majority of Father’s Day shoppers. Almost 30% of smartphone owners will research gift ideas on their device and 16% will use it to make a purchase.

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Father’s Day 2016: Impact on

US Retail

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Father’s Day 2016: Impact on US Retail According to the NRF’s 2016 Father’s Day Spending Survey, conducted by Prosper Insights & Analytics, Americans plan to spend quite a bit on Dad for Father’s Day this year: $125.92 on average. That figure is up $10.35 from last year, and total spending on the holiday is expected to be the highest in 13 years, reaching $14.3 billion. Father's Day falls on June 19 this year.

“It’s encouraging to see consumers planning to splurge on dads,” NRF President and CEO Matthew Shay said. “This increase could be a good sign related to consumers’ willingness to spend more as we head into the second half of the year.”

Special outings such as dinner, brunch or other types of a “fun activity/experience” remain the most popular gift category for dads. Consumers plan to spend $3.1 billion on experiences, up from $2.5 billion last year. They plan to spend about $2.0 billion on clothing and roughly the same amount on gift cards, which are expected to see a sales increase of 10% ($350 million) from last year. The sporting goods, tools and appliances, and automotive accessories categories are expected to see sales of approximately $6–$7 billion each. While greeting cards represent only a small fraction of dollar spend, they are the most commonly purchased Father’s Day gifts: 64.5% of consumers surveyed plan to buy a greeting card for their dad.

Figure 1. Holiday Spending (USD Bil.)

Source: NRF/Prosper Insights & Analytics

Category

2015–2016

2014–2015 Winter Holidays 626.1 616.1

Back to School/College 68.0 74.9

Mother’s Day 21.4 21.2

Valentine’s Day 19.7 18.9

Easter 17.3 16.4

Super Bowl 15.5 14.3

Father’s Day 14.3 12.7

Halloween 6.9 7.4

St. Patrick’s Day 4.4 4.6

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Figure 2. Total Spending on Father’s Day (USD Bil.)


SHOPPERS’ PLANNED PURCHASES INCLUDE:

• Brunch or other Father’s Day activity, for an expected $3 billion

• Gift cards, for an expected $2 billion

• Apparel, for an expected $2 billion

• Electronics, including smartphones, for an expected $1.7 billion

• Greeting cards, for an expected $833 million

• Housewares and gardening items, for an expected $797 million

• Tools and appliances, for an expected $771 million

• Personal services such as a spa day, for an expected $747 million

• Sporting goods or leisure items, for an expected $740 million

• Automotive accessories, for an expected $662 million

• Books and CDs, for an expected $609 million

WHERE ARE PEOPLE SHOPPING? Similar to last year, the majority of Father’s Day shoppers will head to department stores to find gifts for Dad, followed by specialty stores and small businesses. Approximately 32% of Father’s Day shopping will be done online this year, up 3.2% from 2015.

9.6 9.4 9.8

11.1

12.7 13.3

12.5 12.7

14.3

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4

6

8

10

12

14

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2008 2009 2010 2011 2012 2013 2014 2015 2016E

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Figure 3. Where Shoppers Plan to Buy Father’s Day Gifts, 2015 vs. 2016


MOBILE AND TABLET TRENDS Across demographics, consumers are increasingly using their mobile devices to compare prices and purchase products. For Father’s Day, the NRF survey shows the following trends:

• Consumers ages 18–24 are the ones most likely to use mobile devices to research and compare prices (57.6%) and to buy (43.5%). The figures are 30.4% and 32.4%, respectively, for the general population surveyed.

• Most of the retail dollars will be spent on dads across the country (53.3%), but many husbands (28.4%), sons (8.9%), grandfathers (4.9%) and brothers (6.3%) will benefit as well.

38%

32%

27%

24%

17%

11%

2%

0% 10% 20% 30% 40%

Department Store

Online

Discount Store

Specialty Store (Greekng Card / Gil Store, Electronics Store)

Local / Small Business

Specialty Clothing Store

Catalog

2015 2016

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Deborah Weinswig, CPA Managing Director Fung Global Retail & Technology New York: 917.655.6790 Hong Kong: 852.6119.1779 China: 86.186.1420.3016 [email protected]

Erin Schmidt Research Associate

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